Despite the fact we’ve all had more important things to worry about in the last year, it has been impossible to ignore the impact of cryptocurrency. Although some of you will have only become aware once Elon Musk invested, the smart ones among us have been paying attention for a while, while the even smarter have already invested. Luckily, the popularity of cryptocurrencies continues to rise which means it’s not too late to get involved and start making money. So, if you don’t know your Bitcoin from your Litecoin or your Binance from your PrimeXBT, this five step review will give you all the information you need to get started.
- Choose a Good Exchange
Buying cryptocurrency is a bit like buying a second-hand car, although many different dealerships will have that classic model you’re looking for, you want to purchase from one that has a good reputation and guarantees good service and good quality. For this reason it’s essential that you choose the right exchange to purchase your cryptocurrency from. The exchange you choose will determine which currencies you purchase, the nature of your trades as well as the community you join. There are really only three main aspects to consider when choosing an exchange to trade with, which are deposit methods (How you can purchase the cryptocurrency), reputation and fees.The are three common types of Cryptocurrency fees which are imposed for creating an order, which means actively attempting to make a deal then completing it (Maker), completing someone else’s deal (Taker) and withdrawal fees. While it can, of course, be tempting to simply choose the exchange with the lowest fees, this is not always wise as low fees can sometimes mean low quality or slow service. Equally, higher fees don’t necessarily mean better quality or quicker service, which is why researching the reputations of exchanges is vital, as this is the best indicator of quality. Cryptowisser provides exchange lists ranked by each set of fees as well as user scores. Each exchange listed such as Bexplus, Bybit and PrimeXBT also has its own review section, so you can research extensively before making any final decisions
- Come up with a plan
As with all business, having a plan before investing in cryptocurrency is vital. A good strategy will provide you with clarity when making tough decisions as well as help you keep faith when things do go as expected. However, be sure to keep the plan simple. Even the most successful investors started small before setting their ambitions higher, Rome wasn’t built in a day. Once you’ve come up with your strategy, do your best to stick to it, muddled thinking makes for bad investments.
- Create a Portfolio
Despite the remarkable rise of cryptocurrency (or maybe because of), it remains extremely volatile. The landscape can change drastically from one moment to the next, which can be a nightmare for investors, especially beginners. A good way to counter this is by building a portfolio of different currencies rather than just gambling on one and hoping for the best. This obviously means taking a few more risks but that’s all part of the game, the greater the risk, the greater the possible rewards.
- Patience is a Virtue
Sure, we’ve all heard stories of cryptocurrency values skyrocketing, or know someone who took a big risk and it paid off, but the reality is investing in anything, especially cryptocurrency is a question of patience. Believe in your plan and give it time to flourish. If it is initially unsuccessful, there’s nothing wrong with tweaking it a bit, but to change it altogether would be going back to square one.
- Get as Much Advice as Possible
The popularity of cryptocurrency trading means we all know someone more knowledgeable in it than ourselves. Don’t be afraid to ask for advice from people you know as people you don’t, you can never have too much information. Cryptocurrency trading is collaborative by nature, so people are usually happy to help.